Bakers keep upbeat outlook for 2014

CEBU, Philippines - Following an upbeat economic performance in 2013, the bakery industry in Cebu projected to sustain its growth by accounting a significant contribution on the total production volume of the food industry in 2014.

Cebu Bakery Association (CEBA) President Elizabeth Go foresees a brighter future for the sector in 2014 taking into account the continuous expansion of bakeries, convenient facilities, improved technology, adoption of aggressive marketing strategies and constant innovation for new baked products to be introduced in the market.

CEBA has 70 active members in Cebu City.

Due to the limited local produce of crops after agricultural properties were devastated by the recent calamities, Go pointed out that the scarcity of rice and cereals may prompt the consuming public to divert to the ever-ready food products such as bread and pastries as an alternative.

She said that rice cereals are considered to be the basic component of food industry production.

She noted that the tremendous production volume among bakeries may contribute about 20 percent of the total food industry sales in the country.

She clarified though that this will depend on the market demand and the supply of baking raw materials which are mostly imported.

Go cited, however, that the industry could expect tougher competition among players with the opening of new bakery outlets especially in urbanized areas.

Evident to which is the apparent expansion of bakery franchises such as Gardenia, MangTinapay and Pan de Manila.

Although Cebu City and the southern part of the province were spared by the wrath of the recent catastrophes, Go said that it is sad to note the fluctuation of the costs of basic bakery ingredients.

She shared that while the prices of flour and some ingredients remained stable, cost of materials such as liquefied petroleum gas, edible oil, eggs, plastic and power among others has increased due to scarcity of supply.

Aside from the basic needs of bread production, she also said that the industry was challenged in maintaining the prices, weight and quality of bread and other related products.

To further improve efficiency and productivity of the bakery sector, Go then encouraged industry players to take active participation in the enhanced baking demonstrations using improved ingredients and high technology, trainings and seminars organized by various suppliers tapped by CEBA.

She also advised bakery owners and operators to adapt with the health awareness and organic technology trends at present and come up with new concepts of healthy food products for the growing health-conscious market.

"The bakery industry as a whole is compared to leavened dough. When applied with the right amount of yeast, it grows steadily and with proper baking technology. Certainly, it yields the best-quality bread products," Go concluded. /JOB